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I'm sure it makes sense to people smarter than me but I just don't get building a software business with <5% margins. What's the point? Clearly you failed somew
by elif 2y ago
I'm sure it makes sense to people smarter than me but I just don't get building a software business with <5% margins. What's the point? Clearly you failed somewhere along the lines at the whole thing you set out for, which is a clear profit engine... So how do you end up with numbers that look like you are doing easily copyable manufacturing with a tight bottom line? I think too much focus on product growth and organizational growth, and not enough on efficiency, scale, and profit.
The best times I've had at startups were when we were lean, and profiting >50%. The business was easier, we had more flexibility for decisions, morale was great... But then they all seem to grow into 0-10% profit corporate behemoths where each employee can't even tell if the job they do is worth their paycheck, it just becomes awkward, slow, uninspiring work.
And then you find yourself robbing more single parents checking accounts than anyone on earth, but not even profiting. How depressing.
- Workaccount2 2y agoIn start-up spaces you usually don't have stiff competition. Once you grow, and it becomes clear you have a viable market, competitors move in and prices start to get ground down.